[REPUBLIC ACT NO.

9160]

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING

PENALTIES THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled.

SECTION 1. Short Title. — This Act shall be known as the “Anti-Money Laundering Act
of 2001.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to protect
and preserve the integrity and confidentiality of bank accounts and to ensure that the
Philippines shall not be used as a money laundering site for the proceeds of any unlawful
activity. Consistent with its foreign policy, the State shall extend cooperation in
transnational investigations and prosecutions of persons involved in money laundering
activities wherever committed.

SEC. 3. Definitions. — For purposes of this Act, the following terms are hereby defined
as follows:

(a) “Covered institution” refers to:

(1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP);

(2) insurance companies and all other institutions supervised or regulated by the
Insurance Commission; and

(3) (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, closed-end investment companies, common trust funds, pre-need
companies and other similar entities, (iii) foreign exchange corporations, money
changers, money payment, remittance, and transfer companies and other similar entities,
and (iv) other entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated by Securities and Exchange
Commission.

(b) “Covered transaction” is a single, series, or combination of transactions involving a

total amount in excess of Four million Philippine pesos (Php4,000,000.00) or an
equivalent amount in foreign currency based on the prevailing exchange rate within five
(5) consecutive banking days except those between a covered institution and a person
who, at the time of the transaction was a properly identified client and the amount is
commensurate with the business or financial capacity of the client; or those with an
underlying legal or trade obligation, purpose, origin or economic justification.

It likewise refers to a single, series or combination or pattern of unusually large and

complex transactions in excess of Four million Philippine pesos (Php4,000,000.00)
especially cash deposits and investments having no credible purpose or origin, underlying
trade obligation or contract.

(c) “Monetary instrument” refers to:

(1) coins or currency of legal tender of the Philippines, or of any other country;

(2) drafts, checks and notes;

(3) securities or negotiable instruments, bonds, commercial papers, deposit certificates,

trust certificates, custodial receipts or deposit substitute instruments, trading orders,
transaction tickets and confirmations of sale or investments and money market
instruments; and

(4) other similar instruments where title thereto passes to another by endorsement,
assignment or delivery.

(d) “Offender” refers to any person who commits a money laundering offense.

(e) “Person” refers to any natural or juridical person.

(f) “Proceeds” refers to an amount derived or realized from an unlawful activity.

(g) “Supervising Authority” refers to the appropriate supervisory or regulatory agency,

department or office supervising or regulating the covered institutions enumerated in
Section 3(a).

(h) “Transaction” refers to any act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties thereto. It also includes any
movement of funds by any means with a covered institution.

(i) “Unlawful activity” refers to any act or omission or series or combination thereof
involving or having relation to the following:

(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the
Revised Penal Code, as amended;

(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended,
otherwise known as the Dangerous Drugs Act of 1972;
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as amended;
otherwise known as the Anti-Graft and Corrupt Practices Act;

(4) Plunder under Republic Act No. 7080, as amended;

(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;

(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;

(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;

(8) Qualified theft under Article 310 of the Revised Penal Code, as amended;

(9) Swindling under Article 315 of the Revised Penal Code, as amended;

(10) Smuggling under Republic Act Nos. 455 and 1937;

(11) Violations under Republic Act No. 8792, otherwise known as the Electronic
Commerce Act of 2000;

(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal Code, as amended, including those
perpetrated by terrorists against non-combatant persons and similar targets;

(13) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000;

(14) Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries.

SEC. 4. Money Laundering Offense. — Money laundering is a crime whereby the

proceeds of an unlawful activity are transacted, thereby making them appear to have
originated from legitimate sources. It is committed by the following:

(a) Any person knowing that any monetary instrument or property represents, involves,
or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said
monetary instrument or property.

(b) Any person knowing that any monetary instrument or property involves the proceeds
of any unlawful activity, performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in paragraph (a) above.
(c) Any person knowing that any monetary instrument or property is required under this
Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do
so.

SEC. 5. Jurisdiction of Money Laundering Cases. — The regional trial courts shall have
jurisdiction to try all cases on money laundering. Those committed by public officers and
private persons who are in conspiracy with such public officers shall be under the
jurisdiction of the Sandiganbayan.

SEC. 6. Prosecution of Money Laundering.

(a) Any person may be charged with and convicted of both the offense of money
laundering and the unlawful activity as herein defined.

(b) Any proceeding relating to the unlawful activity shall be given precedence over the
prosecution of any offense or violation under this Act without prejudice to the freezing and
other remedies provided.

SEC. 7. Creation of Anti-Money Laundering Council (AMLC). — The Anti-Money

Laundering Council is hereby created and shall be composed of the Governor of the
Bangko Sentral ng Pilipinas as chairman, the Commissioner of the Insurance
Commission and the Chairman of the Securities and Exchange Commission as members.
The AMLC shall act unanimously in the discharge of its functions as defined hereunder:

(1) to require and receive covered transaction reports from covered institutions;

(2) to issue orders addressed to the appropriate Supervising Authority or the covered
institution to determine the true identity of the owner of any monetary instrument or
property subject of a covered transaction report or request for assistance from a foreign
State, or believed by the Council, on the basis of substantial evidence, to be, in whole or
in part, wherever located, representing, involving, or related to, directly or indirectly, in
any manner or by any means, the proceeds of an unlawful activity;

(3) to institute civil forfeiture proceedings and all other remedial proceedings through the
Office of the Solicitor General;

(4) to cause the filing of complaints with the Department of Justice or the Ombudsman for
the prosecution of money laundering offenses;

(5) to initiate investigations of covered transactions, money laundering activities and other
violations of this Act;

(6) to freeze any monetary instrument or property alleged to be proceeds of any unlawful
activity;
(7) to implement such measures as may be necessary and justified under this Act to
counteract money laundering;

(8) to receive and take action in respect of, any request from foreign states for assistance
in their own anti-money laundering operations provided in this Act;

(9) to develop educational programs on the pernicious effects of money laundering, the
methods and techniques used in money laundering, the viable means of preventing
money laundering and the effective ways of prosecuting and punishing offenders; and

(10) to enlist the assistance of any branch, department, bureau, office, agency or
instrumentality of the government, including government-owned and -controlled
corporations, in undertaking any and all anti-money laundering operations, which may
include the use of its personnel, facilities and resources for the more resolute prevention,
detection and investigation of money laundering offenses and prosecution of offenders.

SEC. 8. Creation of a Secretariat. — The AMLC is hereby authorized to establish a

secretariat to be headed by an Executive Director who shall be appointed by the Council
for a term of five (5) years. He must be a member of the Philippine Bar, at least thirty-five
(35) years of age and of good moral character, unquestionable integrity and known
probity. All members of the Secretariat must have served for at least five (5) years either
in the Insurance Commission, the Securities and Exchange Commission or the Bangko
Sentral ng Pilipinas (BSP) and shall hold full-time permanent positions within the BSP.

SEC. 9. Prevention of Money Laundering; Customer Identification Requirements and

Record Keeping. — (a) Customer Identification. — Covered institutions shall establish
and record the true identity of its clients based on official documents. They shall maintain
a system of verifying the true identity of their clients and, in case of corporate clients,
require a system of verifying their legal existence and organizational structure, as well as
the authority and identification of all persons purporting to act on their behalf.

The provisions of existing laws to the contrary notwithstanding, anonymous accounts,

accounts under fictitious names, and all other similar accounts shall be absolutely
prohibited. Peso and foreign currency non-checking numbered accounts shall be allowed.
The BSP may conduct annual testing solely limited to the determination of the existence
and true identity of the owners of such accounts.

(b) Record Keeping. — All records of all transactions of covered institutions shall be
maintained and safely stored for five (5) years from the dates of transactions. With respect
to closed accounts, the records on customer identification, account files and business
correspondence, shall be preserved and safely stored for at least five (5) years from the
dates when they were closed.

(c) Reporting of Covered Transactions. — Covered institutions shall report to the AMLC
all covered transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority concerned prescribes a longer period not exceeding ten (10)
working days.

When reporting covered transactions to the AMLC, covered institutions and their officers,
employees, representatives, agents, advisors, consultants or associates shall not be
deemed to have violated Republic Act No. 1405, as amended; Republic Act No. 6426, as
amended; Republic Act No. 8791 and other similar laws, but are prohibited from
communicating, directly or indirectly, in any manner or by any means, to any person the
fact that a covered transaction report was made, the contents thereof, or any other
information in relation thereto. In case of violation thereof, the concerned officer,
employee, representative, agent, advisor, consultant or associate of the covered
institution, shall be criminally liable. However, no administrative, criminal or civil
proceedings, shall lie against any person for having made a covered transaction report in
the regular performance of his duties and in good faith, whether or not such reporting
results in any criminal prosecution under this Act or any other Philippine law.

When reporting covered transactions to the AMLC, covered institutions and their officers,
employees, representatives, agents, advisors, consultants or associates are prohibited
from communicating, directly or indirectly, in any manner or by any means, to any person,
entity, the media, the fact that a covered transaction report was made, the contents
thereof, or any other information in relation thereto. Neither may such reporting be
published or aired in any manner or form by the mass media, electronic mail, or other
similar devices. In case of violation thereof, the concerned officer, employee,
representative, agent, advisor, consultant or associate of the covered institution, or media
shall be held criminally liable.

SEC. 10. Authority to Freeze. — Upon determination that probable cause exists that any
deposit or similar account is in any way related to an unlawful activity, the AMLC may
issue a freeze order, which shall be effective immediately, on the account for a period not
exceeding fifteen (15) days. Notice to the depositor that his account has been frozen shall
be issued simultaneously with the issuance of the freeze order. The depositor shall have
seventy-two (72) hours upon receipt of the notice to explain why the freeze order should
be lifted. The AMLC has seventy-two (72) hours to dispose of the depositor’s explanation.
If it fails to act within seventy-two (72) hours from receipt of the depositor’s explanation,
the freeze order shall automatically be dissolved. The fifteen (15)-day freeze order of the
AMLC may be extended upon order of the court, provided that the fifteen (15)-day period
shall be tolled pending the court’s decision to extend the period.

No court shall issue a temporary restraining order or writ of injunction against any freeze
order issued by the AMLC except the Court of Appeals or the Supreme Court.

SEC. 11. Authority to Inquire into Bank Deposits. — Notwithstanding the provisions of
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act
No. 8791, and other laws, the AMLC may inquire into or examine any particular deposit
or investment with any banking institution or non-bank financial institution upon order of
any competent court in cases of violation of this Act when it has been established that
there is probable cause that the deposits or investments involved are in any way related
to a money laundering offense: Provided, That this provision shall not apply to deposits
and investments made prior to the effectivity of this Act.

SEC. 12. Forfeiture Provisions.

(a) Civil Forfeiture. — When there is a covered transaction report made, and the court
has, in a petition filed for the purpose ordered seizure of any monetary instrument or
property, in whole or in part, directly or indirectly, related to said report, the Revised Rules
of Court on civil forfeiture shall apply.

(b) Claim on Forfeiture Assets. — Where the court has issued an order of forfeiture of the
monetary instrument or property in a criminal prosecution for any money laundering
offense defined under Section 4 of this Act, the offender or any other person claiming an
interest therein may apply, by verified petition, for a declaration that the same legitimately
belongs to him and for segregation or exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall be filed with the court which rendered
the judgment of conviction and order of forfeiture, within fifteen (15) days from the date of
the order of forfeiture, in default of which the said order shall become final and executory.
This provision shall apply in both civil and criminal forfeiture.

(c) Payment in Lieu of Forfeiture. — Where the court has issued an order of forfeiture of
the monetary instrument or property subject of a money laundering offense defined under
Section 4, and said order cannot be enforced because any particular monetary instrument
or property cannot, with due diligence, be located, or it has been substantially altered,
destroyed, diminished in value or otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender, or it has been concealed, removed,
converted or otherwise transferred to prevent the same from being found or to avoid
forfeiture thereof, or it is located outside the Philippines or has been placed or brought
outside the jurisdiction of the court, or it has been commingled with other monetary
instruments or property belonging to either the offender himself or a third person or entity,
thereby rendering the same difficult to identify or be segregated for purposes of forfeiture,
the court may, instead of enforcing the order of forfeiture of the monetary instrument or
property or part thereof or interest therein, accordingly order the convicted offender to pay
an amount equal to the value of said monetary instrument or property. This provision shall
apply in both civil and criminal forfeiture.

SEC. 13. Mutual Assistance among States.

(a) Request for Assistance from a Foreign State. — Where a foreign State makes a
request for assistance in the investigation or prosecution of a money laundering offense,
the AMLC may execute the request or refuse to execute the same and inform the foreign
State of any valid reason for not executing the request or for delaying the execution
thereof. The principles of mutuality and reciprocity shall, for this purpose, be at all times
recognized.
(b) Powers of the AMLC to Act on a Request for Assistance from a Foreign State. — The
AMLC may execute a request for assistance from a foreign State by: (1) tracking down,
freezing, restraining and seizing assets alleged to be proceeds of any unlawful activity
under the procedures laid down in this Act; (2) giving information needed by the foreign
State within the procedures laid down in this Act; and (3) applying for an order of forfeiture
of any monetary instrument or property in the court: Provided, That the court shall not
issue such an order unless the application is accompanied by an authenticated copy of
the order of a court in the requesting State ordering the forfeiture of said monetary
instrument or property of a person who has been convicted of a money laundering offense
in the requesting State, and a certification or an affidavit of a competent officer of the
requesting State stating that the conviction and the order of forfeiture are final and that
no further appeal lies in respect of either.

(c) Obtaining Assistance from Foreign States. — The AMLC may make a request to any
foreign State for assistance in (1) tracking down, freezing, restraining and seizing assets
alleged to be proceeds of any unlawful activity; (2) obtaining information that it needs
relating to any covered transaction, money laundering offense or any other matter directly
or indirectly related thereto; (3) to the extent allowed by the law of the foreign State,
applying with the proper court therein for an order to enter any premises belonging to or
in the possession or control of, any or all of the persons named in said request, and/or
search any or all such persons named therein and/or remove any document, material or
object named in said request: Provided, That the documents accompanying the request
in support of the application have been duly authenticated in accordance with the
applicable law or regulation of the foreign State; and (4) applying for an order of forfeiture
of any monetary instrument or property in the proper court in the foreign State: Provided,
That the request is accompanied by an authenticated copy of the order of the regional
trial court ordering the forfeiture of said monetary instrument or property of a convicted
offender and an affidavit of the clerk of court stating that the conviction and the order of
forfeiture are final and that no further appeal lies in respect of either.

(d) Limitations on Request for Mutual Assistance. — The AMLC may refuse to comply
with any request for assistance where the action sought by the request contravenes any
provision of the Constitution or the execution of a request is likely to prejudice the national
interest of the Philippines unless there is a treaty between the Philippines and the
requesting State relating to the provision of assistance in relation to money laundering
offenses.

(e) Requirements for Requests for Mutual Assistance from Foreign States. — A request
for mutual assistance from a foreign State must (1) confirm that an investigation or
prosecution is being conducted in respect of a money launderer named therein or that he
has been convicted of any money laundering offense; (2) state the grounds on which any
person is being investigated or prosecuted for money laundering or the details of his
conviction; (3) give sufficient particulars as to the identity of said person; (4) give
particulars sufficient to identify any covered institution believed to have any information,
document, material or object which may be of assistance to the investigation or
prosecution; (5) ask from the covered institution concerned any information, document,
material or object which may be of assistance to the investigation or prosecution; (6)
specify the manner in which and to whom said information, document, material or object
obtained pursuant to said request, is to be produced; (7) give all the particulars necessary
for the issuance by the court in the requested State of the writs, orders or processes
needed by the requesting State; and (8) contain such other information as may assist in
the execution of the request.

(f) Authentication of Documents. — For purposes of this Section, a document is

authenticated if the same is signed or certified by a judge, magistrate or equivalent officer
in or of, the requesting State, and authenticated by the oath or affirmation of a witness or
sealed with an official or public seal of a minister, secretary of State, or officer in or of, the
government of the requesting State, or of the person administering the government or a
department of the requesting territory, protectorate or colony. The certificate of
authentication may also be made by a secretary of the embassy or legation, consul
general, consul, vice consul, consular agent or any officer in the foreign service of the
Philippines stationed in the foreign State in which the record is kept, and authenticated
by the seal of his office.

(g) Extradition. — The Philippines shall negotiate for the inclusion of money laundering
offenses as herein defined among extraditable offenses in all future treaties.

SEC. 14. Penal Provisions. — (a) Penalties for the Crime of Money Laundering. The
penalty of imprisonment ranging from seven (7) to fourteen (14) years and a fine of not
less than Three million Philippine pesos (Php3,000,000.00) but not more than twice the
value of the monetary instrument or property involved in the offense, shall be imposed
upon a person convicted under Section 4(a) of this Act.

The penalty of imprisonment from four (4) to seven (7) years and a fine of not less than
One million five hundred thousand Philippine pesos (Php1,500,000.00) but not more than
Three million Philippine pesos (Php3,000,000.00), shall be imposed upon a person
convicted under Section 4(b) of this Act.

The penalty of imprisonment from six (6) months to four (4) years or a fine of not less than
One hundred thousand Philippine pesos (Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), or both, shall be imposed on a person
convicted under Section 4(c) of this Act.

(b) Penalties for Failure to Keep Records. The penalty of imprisonment from six (6)
months to one (1) year or a fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine pesos
(Php500,000.00), or both, shall be imposed on a person convicted under Section 9(b) of
this Act.

(c) Malicious Reporting. Any person who, with malice, or in bad faith, report or files a
completely unwarranted or false information relative to money laundering transaction
against any person shall be subject to a penalty of six (6) months to four (4) years
imprisonment and a fine of not less than One hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred thousand Philippine pesos
(Php500,000.00), at the discretion of the court: Provided, That the offender is not entitled
to avail the benefits of the Probation Law.

If the offender is a corporation, association, partnership or any juridical person, the

penalty shall be imposed upon the responsible officers, as the case may be, who
participated in the commission of the crime or who shall have knowingly permitted or
failed to prevent its commission. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he shall, in addition to the
penalties herein prescribed, be deported without further proceedings after serving the
penalties herein prescribed. If the offender is a public official or employee, he shall, in
addition to the penalties prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be.

Any public official or employee who is called upon to testify and refuses to do the same
or purposely fails to testify shall suffer the same penalties prescribed herein.

(d) Breach of Confidentiality. The punishment of imprisonment ranging from three (3) to
eight (8) years and a fine of not less than Five hundred thousand Philippine pesos
(Php500,000.00) but not more than One million Philippine pesos (Php1,000,000.00), shall
be imposed on a person convicted for a violation under Section 9(c).

SEC. 15. System of Incentives and Rewards. — A system of special incentives and
rewards is hereby established to be given to the appropriate government agency and its
personnel that led and initiated an investigation, prosecution and conviction of persons
involved in the offense penalized in Section 4 of this Act.

SEC. 16. Prohibitions Against Political Harassment. — This Act shall not be used for
political persecution or harassment or as an instrument to hamper competition in trade
and commerce.

No case for money laundering may be filed against and no assets shall be frozen,
attached or forfeited to the prejudice of a candidate for an electoral office during an
election period.

SEC. 17. Restitution. — Restitution for any aggrieved party shall be governed by the
provisions of the New Civil Code.

SEC. 18. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Bangko Sentral ng Pilipinas, the Insurance Commission and the
Securities and Exchange Commission shall promulgate the rules and regulations to
implement effectively the provisions of this Act. Said rules and regulations shall be
submitted to the Congressional Oversight Committee for approval.
Covered institutions shall formulate their respective money laundering prevention
programs in accordance with this Act including, but not limited to, information
dissemination on money laundering activities and its prevention, detection and reporting,
and the training of responsible officers and personnel of covered institutions.

SEC. 19. Congressional Oversight Committee. — There is hereby created a

Congressional Oversight Committee composed of seven (7) members from the Senate
and seven (7) members from the House of Representatives. The members from the
Senate shall be appointed by the Senate President based on the proportional
representation of the parties or coalitions therein with at least two (2) Senators
representing the minority. The members from the House of Representatives shall be
appointed by the Speaker also based on proportional representation of the parties or
coalitions therein with at least two (2) members representing the minority.

The Oversight Committee shall have the power to promulgate its own rules, to oversee
the implementation of this Act, and to review or revise the implementing rules issued by
the Anti-Money Laundering Council within thirty (30) days from the promulgation of the
said rules.

SEC. 20. Appropriations Clause. — The AMLC shall be provided with an initial
appropriation of Twenty-five million Philippine pesos (Php25,000,000.00) to be drawn
from the national government. Appropriations for the succeeding years shall be included
in the General Appropriations Act.

SEC. 21. Separability Clause. — If any provision or section of this Act or the application
thereof to any person or circumstance is held to be invalid, the other provisions or sections
of this Act, and the application of such provision or section to other persons or
circumstances, shall not be affected thereby.

SEC. 22. Repealing Clause. — All laws, decrees, executive orders, rules and regulations
or parts thereof, including the relevant provisions of Republic Act No. 1405, as amended;
Republic Act No. 6426, as amended; Republic Act No. 8791, as amended and other
similar laws, as are inconsistent with this Act, are hereby repealed, amended or modified
accordingly.

SEC. 23. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.

The provisions of this Act shall not apply to deposits and investments made prior to its
effectivity.
REPUBLIC ACT No. 3019

ANTI-GRAFT AND CORRUPT PRACTICES ACT

Section 1. Statement of policy. It is the policy of the Philippine Government, in line with
the principle that a public office is a public trust, to repress certain acts of public officers
and private persons alike which constitute graft or corrupt practices or which may lead
thereto.

Section 2. Definition of terms. As used in this Act, that term

(a) "Government" includes the national government, the local governments, the
government-owned and government-controlled corporations, and all other
instrumentalities or agencies of the Republic of the Philippines and their
branches.

(b) "Public officer" includes elective and appointive officials and employees,
permanent or temporary, whether in the classified or unclassified or exempt
service receiving compensation, even nominal, from the government as defined
in the preceding subparagraph.

(c) "Receiving any gift" includes the act of accepting directly or indirectly a gift
from a person other than a member of the public officer's immediate family, in
behalf of himself or of any member of his family or relative within the fourth civil
degree, either by consanguinity or affinity, even on the occasion of a family
celebration or national festivity like Christmas, if the value of the gift is under the
circumstances manifestly excessive.

(d) "Person" includes natural and juridical persons, unless the context indicates
otherwise.

Section 3. Corrupt practices of public officers. In addition to acts or omissions of public

officers already penalized by existing law, the following shall constitute corrupt practices
of any public officer and are hereby declared to be unlawful:

(a) Persuading, inducing or influencing another public officer to perform an act

constituting a violation of rules and regulations duly promulgated by competent
authority or an offense in connection with the official duties of the latter, or
allowing himself to be persuaded, induced, or influenced to commit such violation
or offense.

(b) Directly or indirectly requesting or receiving any gift, present, share,

percentage, or benefit, for himself or for any other person, in connection with any
contract or transaction between the Government and any other part, wherein the
public officer in his official capacity has to intervene under the law.
(c) Directly or indirectly requesting or receiving any gift, present or other
pecuniary or material benefit, for himself or for another, from any person for
whom the public officer, in any manner or capacity, has secured or obtained, or
will secure or obtain, any Government permit or license, in consideration for the
help given or to be given, without prejudice to Section thirteen of this Act.

(d) Accepting or having any member of his family accept employment in a private
enterprise which has pending official business with him during the pendency
thereof or within one year after its termination.

(e) Causing any undue injury to any party, including the Government, or giving
any private party any unwarranted benefits, advantage or preference in the
discharge of his official administrative or judicial functions through manifest
partiality, evident bad faith or gross inexcusable negligence. This provision shall
apply to officers and employees of offices or government corporations charged
with the grant of licenses or permits or other concessions.

(f) Neglecting or refusing, after due demand or request, without sufficient

justification, to act within a reasonable time on any matter pending before him for
the purpose of obtaining, directly or indirectly, from any person interested in the
matter some pecuniary or material benefit or advantage, or for the purpose of
favoring his own interest or giving undue advantage in favor of or discriminating
against any other interested party.

(g) Entering, on behalf of the Government, into any contract or transaction

manifestly and grossly disadvantageous to the same, whether or not the public
officer profited or will profit thereby.

(h) Director or indirectly having financing or pecuniary interest in any business,

contract or transaction in connection with which he intervenes or takes part in his
official capacity, or in which he is prohibited by the Constitution or by any law
from having any interest.

(i) Directly or indirectly becoming interested, for personal gain, or having a

material interest in any transaction or act requiring the approval of a board, panel
or group of which he is a member, and which exercises discretion in such
approval, even if he votes against the same or does not participate in the action
of the board, committee, panel or group.

Interest for personal gain shall be presumed against those public officers
responsible for the approval of manifestly unlawful, inequitable, or irregular
transaction or acts by the board, panel or group to which they belong.

(j) Knowingly approving or granting any license, permit, privilege or benefit in

favor of any person not qualified for or not legally entitled to such license, permit,
 privilege or advantage, or of a mere representative or dummy of one who is not
so qualified or entitled.

(k) Divulging valuable information of a confidential character, acquired by his

office or by him on account of his official position to unauthorized persons, or
releasing such information in advance of its authorized release date.

The person giving the gift, present, share, percentage or benefit referred to in
subparagraphs (b) and (c); or offering or giving to the public officer the employment
mentioned in subparagraph (d); or urging the divulging or untimely release of the
confidential information referred to in subparagraph (k) of this section shall, together
with the offending public officer, be punished under Section nine of this Act and shall be
permanently or temporarily disqualified in the discretion of the Court, from transacting
business in any form with the Government.

Section 4. Prohibition on private individuals. (a) It shall be unlawful for any person
having family or close personal relation with any public official to capitalize or exploit or
take advantage of such family or close personal relation by directly or indirectly
requesting or receiving any present, gift or material or pecuniary advantage from any
other person having some business, transaction, application, request or contract with
the government, in which such public official has to intervene. Family relation shall
include the spouse or relatives by consanguinity or affinity in the third civil degree. The
word "close personal relation" shall include close personal friendship, social and
fraternal connections, and professional employment all giving rise to intimacy which
assures free access to such public officer.

(b) It shall be unlawful for any person knowingly to induce or cause any public
official to commit any of the offenses defined in Section 3 hereof.

Section 5. Prohibition on certain relatives. It shall be unlawful for the spouse or for any
relative, by consanguinity or affinity, within the third civil degree, of the President of the
Philippines, the Vice-President of the Philippines, the President of the Senate, or the
Speaker of the House of Representatives, to intervene, directly or indirectly, in any
business, transaction, contract or application with the Government: Provided, That this
section shall not apply to any person who, prior to the assumption of office of any of the
above officials to whom he is related, has been already dealing with the Government
along the same line of business, nor to any transaction, contract or application already
existing or pending at the time of such assumption of public office, nor to any application
filed by him the approval of which is not discretionary on the part of the official or
officials concerned but depends upon compliance with requisites provided by law, or
rules or regulations issued pursuant to law, nor to any act lawfully performed in an
official capacity or in the exercise of a profession.

Section 6. Prohibition on Members of Congress. It shall be unlawful hereafter for any

Member of the Congress during the term for which he has been elected, to acquire or
receive any personal pecuniary interest in any specific business enterprise which will be
directly and particularly favored or benefited by any law or resolution authored by him
previously approved or adopted by the Congress during the same term.

The provision of this section shall apply to any other public officer who recommended
the initiation in Congress of the enactment or adoption of any law or resolution, and
acquires or receives any such interest during his incumbency.

It shall likewise be unlawful for such member of Congress or other public officer, who,
having such interest prior to the approval of such law or resolution authored or
recommended by him, continues for thirty days after such approval to retain such
interest.

Section 7. Statement of assets and liabilities. Every public officer, within thirty days
after the approval of this Act or after assuming office, and within the month of January of
every other year thereafter, as well as upon the expiration of his term of office, or upon
his resignation or separation from office, shall prepare and file with the office of the
corresponding Department Head, or in the case of a Head of Department or chief of an
independent office, with the Office of the President, or in the case of members of the
Congress and the officials and employees thereof, with the Office of the Secretary of the
corresponding House, a true detailed and sworn statement of assets and liabilities,
including a statement of the amounts and sources of his income, the amounts of his
personal and family expenses and the amount of income taxes paid for the next
preceding calendar year: Provided, That public officers assuming office less than two
months before the end of the calendar year, may file their statements in the following
months of January.

Section 8. Dismissal due to unexplained wealth. If in accordance with the provisions of

Republic Act Numbered One thousand three hundred seventy-nine, a public official has
been found to have acquired during his incumbency, whether in his name or in the
name of other persons, an amount of property and/or money manifestly out of
proportion to his salary and to his other lawful income, that fact shall be a ground for
dismissal or removal. Properties in the name of the spouse and unmarried children of
such public official may be taken into consideration, when their acquisition through
legitimate means cannot be satisfactorily shown. Bank deposits shall be taken into
consideration in the enforcement of this section, notwithstanding any provision of law to
the contrary.

Section 9. Penalties for violations. (a) Any public officer or private person committing
any of the unlawful acts or omissions enumerated in Sections 3, 4, 5 and 6 of this Act
shall be punished with imprisonment for not less than one year nor more than ten years,
perpetual disqualification from public office, and confiscation or forfeiture in favor of the
Government of any prohibited interest and unexplained wealth manifestly out of
proportion to his salary and other lawful income.

Any complaining party at whose complaint the criminal prosecution was initiated shall, in
case of conviction of the accused, be entitled to recover in the criminal action with
priority over the forfeiture in favor of the Government, the amount of money or the thing
he may have given to the accused, or the value of such thing.

(b) Any public officer violation any of the provisions of Section 7 of this Act shall
be punished by a fine of not less than one hundred pesos nor more than one
thousand pesos, or by imprisonment not exceeding one year, or by both such
fine and imprisonment, at the discretion of the Court.

The violation of said section proven in a proper administrative proceeding shall be

sufficient cause for removal or dismissal of a public officer, even if no criminal
prosecution is instituted against him.

Section 10. Competent court. Until otherwise provided by law, all prosecutions under
this Act shall be within the original jurisdiction of the proper Court of First Instance.

Section 11. Prescription of offenses. All offenses punishable under this Act shall
prescribe in ten years.

Section 12. Termination of office. No public officer shall be allowed to resign or retire
pending an investigation, criminal or administrative, or pending a prosecution against
him, for any offense under this Act or under the provisions of the Revised Penal Code
on bribery.

Section 13. Suspension and loss of benefits. Any public officer against whom any
criminal prosecution under a valid information under this Act or under the provisions of
the Revised Penal Code on bribery is pending in court, shall be suspended from office.
Should he be convicted by final judgment, he shall lose all retirement or gratuity benefits
under any law, but if he is acquitted, he shall be entitled to reinstatement and to the
salaries and benefits which he failed to receive during suspension, unless in the
meantime administrative proceedings have been filed against him.

Section 14. Exception. Unsolicited gifts or presents of small or insignificant value

offered or given as a mere ordinary token of gratitude or friendship according to local
customs or usage, shall be excepted from the provisions of this Act.

Nothing in this Act shall be interpreted to prejudice or prohibit the practice of any
profession, lawful trade or occupation by any private person or by any public officer who
under the law may legitimately practice his profession, trade or occupation, during his
incumbency, except where the practice of such profession, trade or occupation involves
conspiracy with any other person or public official to commit any of the violations
penalized in this Act.

Section 15. Separability clause. If any provision of this Act or the application of such
provision to any person or circumstances is declared invalid, the remainder of the Act or
the application of such provision to other persons or circumstances shall not be affected
by such declaration.
Section 16. Effectivity. This Act shall take effect on its approval, but for the purpose of
determining unexplained wealth, all property acquired by a public officer since he
assumed office shall be taken into consideration.
REPUBLIC ACT No. 4200

AN ACT TO PROHIBIT AND PENALIZE WIRE TAPPING AND OTHER RELATED

VIOLATIONS OF THE PRIVACY OF COMMUNICATION, AND FOR OTHER
PURPOSES.

Section 1. It shall be unlawful for any person, not being authorized by all the parties to
any private communication or spoken word, to tap any wire or cable, or by using any
other device or arrangement, to secretly overhear, intercept, or record such
communication or spoken word by using a device commonly known as a dictaphone or
dictagraph or dictaphone or walkie-talkie or tape recorder, or however otherwise
described:

It shall also be unlawful for any person, be he a participant or not in the act or acts
penalized in the next preceding sentence, to knowingly possess any tape record, wire
record, disc record, or any other such record, or copies thereof, of any communication
or spoken word secured either before or after the effective date of this Act in the manner
prohibited by this law; or to replay the same for any other person or persons; or to
communicate the contents thereof, either verbally or in writing, or to furnish
transcriptions thereof, whether complete or partial, to any other person: Provided, That
the use of such record or any copies thereof as evidence in any civil, criminal
investigation or trial of offenses mentioned in section 3 hereof, shall not be covered by
this prohibition.

Section 2. Any person who willfully or knowingly does or who shall aid, permit, or cause
to be done any of the acts declared to be unlawful in the preceding section or who
violates the provisions of the following section or of any order issued thereunder, or
aids, permits, or causes such violation shall, upon conviction thereof, be punished by
imprisonment for not less than six months or more than six years and with the
accessory penalty of perpetual absolute disqualification from public office if the offender
be a public official at the time of the commission of the offense, and, if the offender is an
alien he shall be subject to deportation proceedings.

Section 3. Nothing contained in this Act, however, shall render it unlawful or punishable
for any peace officer, who is authorized by a written order of the Court, to execute any
of the acts declared to be unlawful in the two preceding sections in cases involving the
crimes of treason, espionage, provoking war and disloyalty in case of war, piracy,
mutiny in the high seas, rebellion, conspiracy and proposal to commit rebellion, inciting
to rebellion, sedition, conspiracy to commit sedition, inciting to sedition, kidnapping as
defined by the Revised Penal Code, and violations of Commonwealth Act No. 616,
punishing espionage and other offenses against national security: Provided, That such
written order shall only be issued or granted upon written application and the
examination under oath or affirmation of the applicant and the witnesses he may
produce and a showing: (1) that there are reasonable grounds to believe that any of the
crimes enumerated hereinabove has been committed or is being committed or is about
to be committed: Provided, however, That in cases involving the offenses of rebellion,
conspiracy and proposal to commit rebellion, inciting to rebellion, sedition, conspiracy to
commit sedition, and inciting to sedition, such authority shall be granted only upon prior
proof that a rebellion or acts of sedition, as the case may be, have actually been or are
being committed; (2) that there are reasonable grounds to believe that evidence will be
obtained essential to the conviction of any person for, or to the solution of, or to the
prevention of, any of such crimes; and (3) that there are no other means readily
available for obtaining such evidence.

The order granted or issued shall specify: (1) the identity of the person or persons
whose communications, conversations, discussions, or spoken words are to be
overheard, intercepted, or recorded and, in the case of telegraphic or telephonic
communications, the telegraph line or the telephone number involved and its location;
(2) the identity of the peace officer authorized to overhear, intercept, or record the
communications, conversations, discussions, or spoken words; (3) the offense or
offenses committed or sought to be prevented; and (4) the period of the authorization.
The authorization shall be effective for the period specified in the order which shall not
exceed sixty (60) days from the date of issuance of the order, unless extended or
renewed by the court upon being satisfied that such extension or renewal is in the public
interest.

All recordings made under court authorization shall, within forty-eight hours after the
expiration of the period fixed in the order, be deposited with the court in a sealed
envelope or sealed package, and shall be accompanied by an affidavit of the peace
officer granted such authority stating the number of recordings made, the dates and
times covered by each recording, the number of tapes, discs, or records included in the
deposit, and certifying that no duplicates or copies of the whole or any part thereof have
been made, or if made, that all such duplicates or copies are included in the envelope or
package deposited with the court. The envelope or package so deposited shall not be
opened, or the recordings replayed, or used in evidence, or their contents revealed,
except upon order of the court, which shall not be granted except upon motion, with due
notice and opportunity to be heard to the person or persons whose conversation or
communications have been recorded.

The court referred to in this section shall be understood to mean the Court of First
Instance within whose territorial jurisdiction the acts for which authority is applied for are
to be executed.

Section 4. Any communication or spoken word, or the existence, contents, substance,

purport, effect, or meaning of the same or any part thereof, or any information therein
contained obtained or secured by any person in violation of the preceding sections of
this Act shall not be admissible in evidence in any judicial, quasi-judicial, legislative or
administrative hearing or investigation.

Section 5. All laws inconsistent with the provisions of this Act are hereby repealed or
accordingly amended.
Section 6. This Act shall take effect upon its approval.
BATAS PAMBANSA BLG. 22

AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK

WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.

Section 1. Checks without sufficient funds. - Any person who makes or draws and
issues any check to apply on account or for value, knowing at the time of issue that he
does not have sufficient funds in or credit with the drawee bank for the payment of such
check in full upon its presentment, which check is subsequently dishonored by the
drawee bank for insufficiency of funds or credit or would have been dishonored for the
same reason had not the drawer, without any valid reason, ordered the bank to stop
payment, shall be punished by imprisonment of not less than thirty days but not more
than one (1) year or by a fine of not less than but not more than double the amount of
the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both
such fine and imprisonment at the discretion of the court.

The same penalty shall be imposed upon any person who, having sufficient funds in or
credit with the drawee bank when he makes or draws and issues a check, shall fail to
keep sufficient funds or to maintain a credit to cover the full amount of the check if
presented within a period of ninety (90) days from the date appearing thereon, for which
reason it is dishonored by the drawee bank.

Where the check is drawn by a corporation, company or entity, the person or persons
who actually signed the check in behalf of such drawer shall be liable under this Act.

Section 2. Evidence of knowledge of insufficient funds. - The making, drawing and

issuance of a check payment of which is refused by the drawee because of insufficient
funds in or credit with such bank, when presented within ninety (90) days from the date
of the check, shall be prima facie evidence of knowledge of such insufficiency of funds
or credit unless such maker or drawer pays the holder thereof the amount due thereon,
or makes arrangements for payment in full by the drawee of such check within (5)
banking days after receiving notice that such check has not been paid by the drawee.

Section 3. Duty of drawee; rules of evidence. - It shall be the duty of the drawee of any
check, when refusing to pay the same to the holder thereof upon presentment, to cause
to be written, printed, or stamped in plain language thereon, or attached thereto, the
reason for drawee's dishonor or refusal to pay the same: Provided, That where there
are no sufficient funds in or credit with such drawee bank, such fact shall always be
explicitly stated in the notice of dishonor or refusal. In all prosecutions under this Act,
the introduction in evidence of any unpaid and dishonored check, having the drawee's
refusal to pay stamped or written thereon or attached thereto, with the reason therefor
as aforesaid, shall be prima facie evidence of the making or issuance of said check, and
the due presentment to the drawee for payment and the dishonor thereof, and that the
same was properly dishonored for the reason written, stamped or attached by the
drawee on such dishonored check.
Not with standing receipt of an order to stop payment, the drawee shall state in the
notice that there were no sufficient funds in or credit with such bank for the payment in
full of such check, if such be the fact.

Section 4. Credit construed. - The word "credit" as used herein shall be construed to
mean an arrangement or understanding with the bank for the payment of such check.

Section 5. Liability under the Revised Penal Code. - Prosecution under this Act shall be
without prejudice to any liability for violation of any provision of the Revised Penal Code.

Section 6. Separability clause. - If any separable provision of this Act be declared

unconstitutional, the remaining provisions shall continue to be in force.

Section 7. Effectivity. - This Act shall take effect fifteen days after publication in the
Official Gazette.1âwphi1